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tv   After the Bell  FOX Business  April 8, 2014 4:00pm-5:01pm EDT

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pretty well without the dow. [closing bell ringing] >> we'll watch the aluminum-maker very closely now. david: alcoa is we'll cover the earnings as soon as they bounce here. >> the nasdaq comes off the worst three-day slide we've seen since 2011. here we go. it is up 33 points. that does not erase the losses it's seen over the past week. the russell coming back about 3/4 of a percent but air definitely came out of these markets today. the dow jones industrials struggling last hour but looking to make a go of the green line up 12 points. david: looking at 1850 of the s&p, going down to 1845, saying there are levels around that point which they are contend. as you can see the s&p doing very well, outperforming the dow jones today. time for your front page headlines. "wall street journal" reporting citigroup is warning investors it may miss a key 2015 profitability target. a ratio of profit to equity
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owned by shareholders after the fed rejected the bank's capital plan. liz: american airlines group today saying bad weather did really hurt its first quarter results. american saying flight cancellations caught quarterly revenue by $115 million and cut operating profit by about $60 million. david: microsoft is closer to finalizing the take over of nokia's phone business. the chinese regulators giving the deal the green light. saying nokia will not be required to change its patent portfolio. >> eli lilly stock little changed after a louisiana jury ruled the drugmaker and japanese partner must pay $9 billion in punitive damages for allegedly failing to close cancer risk for a diabetes drug, down two pennies. david: comcast tells regulators planned acquisition of time warner cable will not deprive consumers of choices. comcast says the merger will help it compete with rivals like google an apple. liz: general motors will pay a
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30 cents a share dividend in june even as it fights to restore its reputation after a series of massive recalls. it will be the automaker's second payout since it restored dividend this year. "after the bell" starts right now. here come alcoa earnings no too. david: chris ressler will give us three stock picks. larry shover in the pits of the cme larry since we have so much stock focus coming oil is up 2%. is that all about ukraine. >> partly about ukraine. we got a risk premium bounce for sure. the dollar is lower. we have a little bit after risk-on day today. dollar is hire against most
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currencies, rates are lower. let's know that russia is definitely creating a risk premium to oil. liz: okay. that is all well and good but we also need to bet an update to you with what happened in the glitch in trading. i know it is over and globe x is trading again but any clarity what caused it? >> there is no official clarity what caused it 1:45 central time. let me tell you, once again floor traders come to the rescue. that the is beauty of the cme. globex did not work for almost two hours however the grain markets did not skip a beat. we have an army of floor traders, market makers, what have you, to fill in the gap to take care of all the orders in corn, wheat, soybean, ethanol. you name it, we have it. david: bernie williams, tech making a recovery today, up almost, the nasdaq up .81, almost a full percentage point. were you buying tech today? >> yeah, i was. we bought several companies. one of which is nxp
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semiconductors which is off 10% the last couple days. it has great exposure to several industries such as autos, and mastercard and visa card which has to do with security and really on next year earnings it is looking very reasonably value. i think drawdown in that company last couple days was unwarranted. david: forgive me for interrupting. we have breaking news from alcoa, earnings. adam, go ahead. >> beat on earnings, david, nine cents a share. street was expecting five cents a share. revenue came in line with expectations $5.5 billion. alcoa continues to project 7% global aluminum demand growth in 2014. we'll continue to crunch these numbers, david. david: okay, liz, the interesting thing we reported alcoa, once it got off the dow, the stock is up about 6% then. there was a very big deal they made with a truck deal, ultraone truck wheel. they're getting into wheels now.
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that is improve their business. did very well on that front. liz: and auto bodies. i can not remember the last time alcoa beat on earnings per share by that much it has been such a struggle. because it is to some advertised, aluminum prices fallen, and they closed plants in the last five years. up to nine cents a share, compared to what was expected, five pennies a share, matching revenue. this is great news for alcoa, you see the stock is moving, sorry, moving slightly higher from the bid and ask from its close. david: larry, what about alcoa now? despite the great news the stock is not zooming ahead in after-hours. it is zooming ahead but not that much. >> yeah. keep in mind it rallied 60% on strategic alliances with boeing and ford. the production margin has gone higher. the big story with alcoa is obviously aluminum and aluminum
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prices, premiums are very high but beneath all that veneer there was an amazing amount of inventory mind that the market recognizes. the also keep in mind especially in the western provinces of china, they continue to smelt the metal. so the inventories continue to grow. it is tough to get at but once they do, if the lme ever changes the rule for cash and carry trade we'll see an enormous amount of ininventory, making it harder for alcoa to make money on aluminum alone. liz: let me give some clarity. bernie, you can chime in here. i know you're picking names like schlumberger and eaton. looking at alcoa, they're saying aerospace will look better than they had anticipated, not by much, but about a percent. aerospace looking good. what does this say about industrial names out there for the pickings? >> i think it is positive and we don't cover alcoa right now. one question i would look at in their conference call is, what is the impact of them gearing up for the ford f-150 transition
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which they will start using quite a bit of aluminum in trucks? that may be a reason for their higher inventory. david: chris, let me go to you. seems like a little bit after jump here, but the federal reserve is concerned about what is happening with growth. they seemed to be a little more pessimistic than a lot of traders in their last report, whenever we hear them come out and talk. they're not that almosting what is happening with the economy. suggesting that growth will come down a little bit from what was earlier forecast. with that, in mind, is it possible for this market to continue to go up the way it has been earlier in the year? >> no. i think we've been through a very nice, healthy correction. the year-to-date numbers may not be what everybody wants but i would like to look back three years and markets have done very well. so, we think that the first quarter, clearly was difficult with weather. alcoa certainly hopefully, is a good indication of a better earnings season. but i'm looking more at the second and third quarter guidance here during the earnings season that really kick
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kicks in next week. we think it should be better second half than first half that should benefit a lot of companies. liz: chris, you like cernerrer, you like kvh and carmax. carmax is an interesting one. the auto industry has certainly come back but what is the heart of your picking here? >> carmax they were impacted by weather here recently. they had a difficult quarter. we think it's a well-managed company. they're reaching out to a whole variety of customers with their subprime lending. and we think that they will siebert times in the second half. you know, kvhi we think is a great maritime play on broadband distribution. it is a small cap company. noise under the radar screen but is a great secular growth story. flies under the radar. medical record-keeping which cerner is a preeminent leader in, will continue to help that modernization.
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david: bernie, i read in your notes, 45% of your equity holdings are overseas. i thought that was a mistype. if that's right, why? >> well, we're a globally-diversified investment company. we build balanced portfolio and look for assets across the world. so 45%, if you look at market cap of all the world's assets isn't, clearly out of bounds. but more importantly, when you look at emerging markets in europe, you're seeing better valuations and clearly in the case of emerging markets you're seeing much higher growth, even though it has come down somewhat. liz: larry, we're showing a flash on bottom, gold i hit's highest close in would weeks. gold looked good today but so did soft commodities, wheat, oat, corn. albeit the problem with the glitch. all of those names look better. is the great commodities selloff over? are we back into different rotation back into these areas? >> i would say no. what we'll see in 2014 and
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beyond is more of divergence in commodity prices. it's not going to be like we've seen before, where the dollar goes lower and all commodities suddenly go higher. we're starting to see, other than today, a little bit more divergence. we're seeing that especially in industrial metals. we've seen nickel outperform iron ore. that is not supposed to happen. we have copper and aluminum falling other than today. gold is definitely a technical bounce. i think it will be a lot harder to buy or to trade commodities because they're going to start trading on their own fundamentals and not on quantitative easing. david: good stuff, larry. thank you. liz: bern my williams, chris recognize letter, thank you. we'll check back in with the futures numbers.ea what is happening tomorrow. thanks, guys. liz: bigger is not always better. since the bear market lows small cap stocks have outperformed the s&p rallying 236%, versus the s&p's 176% from the march '09 lows. could now be the time to start
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selling these darlings of walt street? we asked this question over the years but is small starting to get expensive? david: the city of san jose, california, throwing a curveball at the mlb, accusing them of collusion. the city wants to snatch up the oakland a's and vows to take its fight all the way to the supreme court. will it work and what fill it mean for the future of baseball. and we want to hear from you. alcoa officially kicking off earnings season. will the weather kill the first-quarter earnings? we saw some good numbers from alcoa. will that hold true for the rest of the earnings. tweet us, fbnatb. your answers coming later. ♪ [ male announcer ] what if a small company
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liz: alcoa reporting earning just moments ago. the stock moving slightly to the upside. david: let's go back to nicole petallides at the nyse for more details. she is working busily there. >> yeah, i am. when these earnings comes out a lot comes in bit by bit and i want to make sure i have the latest for you here. alcoa, you do see the bid-ask. trading to the upside after-hours. earnings came in beat the street, nine cents versus five cents. we look at revenue, and revenue comes in line at 5.5 billion,
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that is right in line with estimates. what is interesting about revenue they have been faced with aluminum prices that have been flagging that was driven by global oversupply. that may have cut into revenue. but they cut production costs over the quarter. they closed some expensive smelters. they talked about global demand for aluminum rising 7% in 2014. you know what, liz and dave, what will help alcoa going forward, is lightweight aluminum products for cars and airplanes. the automotive and aerospace industry are two sectors that bolster demand. that is something we're watching as well. >> thank you, nicole, the new ultraone truck wheel. s&p futures closing in 30 seconds. larry shover from the pits of cme. how is it shaping up for tomorrow, larry. >> let me encourage you to think, yesterday's low was 3% peak to trough move. it was like a late run in january when we had a 6% peak to
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trough move based on emerging markets. the only difference on the rerun it is now momentum stocks. people were wholesaling internet and cloud computing. people are on edge because people will say will we have the sprawl? last friday people thought it was prerogative we would hit 100. now they say we have to get down to the 1780 to get consolidation complete. don't listen to the noise. keep holding on, keep diversified and realize we're in better shape than what you're hearing. david: larry, terrific stuff today. thank you very much, larry shover from the cme. liz? liz: we love our floor traders. yes, yes, open outcry lives. russell 2000 has jumped more than 233% since the market lows of march 2009 that greatly outperforms the s&p 500 but small cap stocks are underperforming the s&p 500 so far this year. does that indicate a change in the small cap momentum that we have seen over not just the past year but over more than a
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decade? have these stocks now actually become too overpriced? joining us now, is the head of small cap strategy at bank of america merrill lynch, steven bisanctis. if i had a dime for everybody over the past decade that said small cap run was over i would be so much wealthier, right? >> well, i guess so. like for us last year was a very good year around we went from being basically at attractive valuations. now we've gone to the, the opposite side of the spectrum where even on an absolute basis you really can't make the case for small cap looking attractive. liz: what is the average price-to-earnings ratio on a russell 2000 stock. >> it is 19 times earnings. historical earnings are 15. liz: now it is looking toppy. >> we're one standard deviation from the long-term average which means small cap absolute performance should come out around flattish. we're not calling that for 2014. we think there will be upside around earnings but when you start to look where we are today
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versus history it definitely looks very expensive here. liz: very expensive at 19 times earnings ratio. >> right. liz: let's just explain to people why russell 2000 or smaller cap stocks could so well? because they're growth stocks, right. >> exactly. liz: they take what money they make. they don't give it out in dividends usually. they will put it back into the business to grow. >> true. liz: would you sell out of these names at this moment? >> i think you have to be a lot more selective. last year you had 85% of the index actually up. a lot of stocks were up a huge amount. now all of a sudden they don't look nearly, they're not cheap anymore. in addition i think you get better earnings growth here in 2014 for small but it is a matter of what you're going to pay for that and i think you're paying way to much. if you look at cheap stocks, how many stocks are trading below 10 times earnings, three times cash, they're all very expensive. just not a lot of good bargains out there. liz: here is from march of 2009. folks, that was the bottom of the market.
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it has been a good run. not as great as the nasdaq. are there ones you may say maybe avoid? >> in terms of our positioning one would be more global sickly inclined. more like overseas exposure. even small cap companies have some overseas exposure. the way you go through sectors would be industrials. we like industrials. we like technology. they have a lot more overseas exposure, do well when economies are improving, when rates go higher. the once we don't like are consumer staples and discretionary. liz: that is interesting you say that, because utilities and telecom done well this year in the broader market. >> right. that is the reason why they have done well where interest rates have actually gone on where most people anticipated rates to go higher. our forecast is for rates to go higher. they're really expensive group. they're domestically focused. same for domestically focused.
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don't have international exposure we're looking for. consumer discretionary same situation. very expensive. have worked since the bottom of '09. look expensive. the revision trend actually gotten a lot worse, a lot worse than it had been in the past. companies have been missing numbers in that space. so sort of like, more global cyclicals versus dough es mickly -- domestically oriented groups. liz: more names with footprints overseas. >> exactly. liz: steven, we don't assume everybody out there understands your version of a small cap stock. >> right. liz: how do you define one? >> $3 billion and below. russell 2000 started last year at 2.4 billion and below. 3 billion and below would be inside of what we consider small cap. liz: it is lovely to have you on and we really appreciate your expertise. >> thank you very much. liz: of bank of america and merrill lynch. see you next time. tell the gang we said hi. >> i will. liz: david, over to you. david: thank you very much, liz. we all know cybercrime is a
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major threat and we're now in a new era of so-called megabreaches. we'll talk to a man behind the disturbing new report on explosion of hack attacking and how protect yourself. new orleans is it the next silicon valley? we talk to two new orleans based entrepreneurs that set an incredible task. to create a new business every week for a whole year. 52 businesses in a year. ♪ why relocating manufacturingpany to upstate new york? i tell people it's for the climate. the conditions in new york state are great for business.
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new york is ranked #2 in the nation for new private sector job creation. and now it's even better because they've introduced startup new york - dozens of tax-free zones where businesses pay no taxes for ten years. you'll get a warm welcome in the new new york. see if your business qualifies at startupny.com but with less ergy, moodiness, i had to do something. i saw mdoctor. a blood test showed it was low testosterone, not age. we talked about axiron the onlynderarm low t treaent that can restore t vels to normal in about two weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especlly those who are or who may become pregnant, and children should avoidt where axirons applied as unexpected signs of puberty in children or changes in body hair or incased acne in women may occur. report these symptoms to your doctor. tell your doctorbout all medical conditions and medications. serious side effects could include increased sk of prostate cancer,
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david: time for a quick speed reed. five stories in a minute.
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first up samsung electronics is on track to post the second straight quarter of profit decline. the south korean tech giant estimated its quarterly operating profit fell by 4.3%. citigroup is planning to close a third of its branches in south korea amid weaker profit there. the bank did not say when the closures will be completed or how many jobs will be cut. gm investing mon in two michigan plants to boost electric car research and production capabilities. the investment is expected to add 1400 jobs. hbo game of thrones attracting record viewership despite glitches. 6.2 million watched season four premier, making hbo's largest audience since "the sopranos" season finale in 2007. price doing for childhood owe es bees think is climbing cordings to the duke health institute. the medical costs associated
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with obesity is 11,000 per child. that is today's "speed read." -- 19,000 per child. that is today's speed read. liz. liz: the city of san jose, california is crying foul on mlb accusing them of collusion. an appeals court granted san jose, the city, a request to fast track a lawsuit against the mlb over its antitrust exemption. david: they have had that exemption since the 1920s. some people say it is way out of date. san jose has been attempting to the move the oakland a's to the city, a move has been blocked by the mlb. do they stand a chance of winning and what could be the financial impact of such a move? with us is the sports impacts president and economics professor at webster university. professor, good to see you. thanks for coming on. before we get too much in the weeds of supreme court decisions and antitrust law i want to figure out exactly what happened here. is san jose claiming, because
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san jose assume wants to keep the team there or wants to bring the team home, that mlb, major league baseball is colluding with the oakland a's to keep the team in oakland s that the charge? >> well i think the other issue too is, i think the san francisco giants have something to say about this as well because at the end of the day, the a's want to, i believe the oakland a's want to move to san jose because the oakland a's currently have the worst ballpark in perhaps all of professional sports. just the other day they had to shut down a game because of some rain issues, poor drainage last year. they had sewage issues at their facility. so i think the real issue is that san francisco giants trying to protect their territory because currently san jose is located in san francisco giant territory. liz: right. and certainly they don't want two teams that are extremely close to each other but that brings us to san jose. san jose has a hire tax base. a lot of silicon valley startups
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are there. big companies are there. this would be great. they could promise they will bid an absolutely fabulous new stadium or arena for the baseball team but, mlb that is a pretty serious accusation to lob at them. is there validity to this? >> i think that again, major league baseball is really standing up and acting out more on behalf of the san francisco giants in trying to protect the giants's turf. what is interesting, i agree, it would be a fantastic move for the a's franchise. i think a's fans would love to be in a brand new ballpark, being in st. louis where we have beneficiaries of relatively new ballpark and you see them all around baseball the last 10 or 15 years, it does a wonderful thing for a fan base but unfortunately you have a very poor situation in oakland and finances between the two teams, guys, are so different, you could see why oakland wants to move to the more affluent san jose market. just a few numbers real quickly. forbes just came out with their franchise valuations of the
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giants last year generated about $320 million in revenue. that was fifth best in baseball compared to oakland at only 190, third worst in baseball. so you can see why oakland wants to move. david: but here's the thing. there is this antitrust exemption that mlb has. it dates back to the 1920s. maybe it was valid back then. it's not valid today. just about everybody agrees to that. if san jose can prove collusion between the mlb and the oakland a's they would have to take that issue of the antitrust exempt sun that baseball has to the supreme court. would they win? >> boy, you ask a great question. i'll say this. that if i'm the a's, i'm pointing to the fact that you have three other large markets, new york, chicago. >> and los angeles, where the counties in the territories are shared. the only reason why they're not shared in northern california is because of an agreement that the a's almost, in a humanitarian
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gesture back in 1990, they allowed san francisco to have santa clara county because of the giants at that time were doing very poorly financially. the a's were doing very well. now it is funny the roles reversed. giants will come back and say, wait a minute, new owners didn't invest in team and new stadium they have if they thought they would about give up santa clara county. i think they have a decent chance of winning at the supreme court but again you just never know because you have the weight of history working on the side of mlb and the giants. david: professor patrick risch, we'll wait and see. very interesting case. thanks for coming in and explaining it. >> thank you. david: the number of data breaches soaring to an all-time high last year as hackers unleash the most damaging series of cyber attacks in history. coming up next, we're going to tell you which industries are at risk, at most risk and in particular how you can protect yourself. good details coming up. liz: plus most mid-sized suvs
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fail a new crash test out. only two of them, only two vehicles earn the highest rating of good. where can yours land on the list? i want to know where mine landed. we've got the results coming up. 24/7. i'm sorry, i'm just really reluctant to try new things. really? what's wrong with trying new things? look! mommy's new vacuum! (cat screech) you feel that in your muscles? i do... drink water. it's a long story. well, not having branches let's us give you great rates and service. i'd like that. a new way to bank. a better way to save. ally bank. your money needs an ally. a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people
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while investing billions improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again. before those little pieces would get in between my dentures and my gum and it was uncomfortable. [ male announcer ] just a few dabs is clinically proven to seal out more food particles. [ corrine ] super poligrip is part of my life now. to seal out more food particles. hi, are we still on for tomorrow? tomorrow. quick look at the weather. nice day, beautiful tomorrow. tomorrow is full of promise. we can come back tomorrrow. and we promise to keep it that way. driven to preserve the environment, csx moves a ton of freight nearly 450 miles on one gallon of fuel. what a day. can't wait til tomorrow.
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(agent) i understand. (dad) we've never sold a house before. (agent) i'll walk you guys through every step. (dad) so if we sell, do you think we can swing it? (agent) i have the numbers right here and based on the comps that i've found, the timing is perfect. ...there's a lot of buyers for a house like yours. (dad) that's good to know. (mom) i'm so excited. david: cybercrime and hacking hitting an all-time high last year according to a report released by the cybersecurity firm symantec. the number of data breaches rose
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62% from 2012, exposing more than 552 million identities. liz: we all keep doing things on tablets and smartphones. it is growing. maybe the holes are growing? what are hackers targeting? how can you protect yourself? joining us now, symantec's information security group vice president. this is the report. and there's some fascinating things in here but let's just get right to the top here and talk about why we've seen such a jump. the internet of things, we talked about that with the solutions ceo in the last hour. we're all connected to much. does the hole become bigger because of that? >> i think if you look at velocity and variety and volume of attacks, it is directly correlated with the value of information. the lifeblood of many organizations is their data, is their information. and with that, so exists a monetary underground where that information can be exchanged. you have hacktivists after their five minutes of fame. you have organized crime focused on monetizing the that
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information. yo hav nation states focused on intellectual property and secrets. so i think the key trend over here that we saw is this year ushered in a new type of breach, the megabreach. a breach in which over 10 million records is exposed at one time. and the key takeaway there is if you couple that with another key finding in this report, over 91% increase in targeted attacks, that really changed the landscape here. david: well there are a couple key takeaways i took away because how i can protect myself. i think that is what most people out there are interested in. you figure out who it is, what kind of groups are most likely to be involved in this thing and who is likely to be targeted. personal assistants, and public relations firms are number one and two. that, what that says to me, if i have a personal assistant or use a pr firm as a lot of folks out there do, i wouldn't give them any personal information. >> well you got to keep doing
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business so you have to have that trust relationship. david: again, you don't give, avoid giving them your social security account. avoid giving them credit card accounts, et cetera, right. >> absolutely. the most targeted information out there is your name, your birth date, your credit card information. the recipe for any identity theft comes from that personal information. david: you came out with a list, your name, your birth date, then social security. what do people do with a name? how much can they then do? of course the home address and medical records? >> so the value of a real name coupled with a address is building blocks of identity theft. you need to know who the person is. from that these criminals are doing are starting to build fake identities and start using that in the underground. we're seeing a trend where organizations are starting to leverage that information to start procreating other social attacks in places like facebook. david: let's talk about that. again my name key here is trying to avoid being attacked myself.
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twitter and facebook. i have to get on twitter. it is very important to our business here. i don't want to use it without being used by the folks who look at it. can i do that? can i use facebook and twitter without -- how do i keep myself from getting attacked if i use those devices? >> one of the key devices on facebook, the most common attack, the 81% of the attacks out there were on fake offerings. so this is when you get offered that, iphone 7, that doesn't even exist, if you fill in a survey with all your personal information. funny how many people are actually falling for this. and -- david: i wouldn't use, by the way, i would not do any commerce on these sites. i know facebook is hoping that people do commerce that click on ads. i will not click on an ad when i'm on facebook or twitter. liz: are we safe on zappos, and it has verisign? that has always been my metric? >> the see is to know your information. make sure if something doesn't
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look true, it's probably not true. so don't trust it. and make sure that you're constantly vigilant about your records, your personal records. david: let me finish this point. if i do commerce on facebook, am i more likely to get hacked than if i do commerce on my own personal site wherever that happens to be? >> i think there are plenty of legitimate commercial uses. one of the key trends we're seeing where you should be wary when you don't know the site you're doing commerce on. and so there are plenty of places like facebook and others where commerce is legitimate. but the key is to be wary of those that are suspicious. liz: symantec, don't click on surveys and offerings, usually, right? david: two words to avoid, reorder and payment. when you see that, in your headline, do not open them up at all, right? liz: thank you. david: thanks a lot. talk about taking the bull by the horns, coming up we have two men behind 52 business. this is a startup that plans to
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create 52 businesses a year! liz: what is 46 stories tall, 860,000 square feet and home to 15 daily publications and 21 magazines? in a moment you will be the only ones to get to see the inside of this landmark new york skyscraper. this is a fox business exclusive. cheryl has it. ♪
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why relocating manufacturingpany to upstate new york?
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i tell people it's for the climate. the conditions in new york state are great for business. new york is ranked #2 in the nation for new private sector job creation. and now it's even better because they've introduced startup new york - dozens of tax-free zones where businesses pay no taxes for ten years. you'll get a warm welcome in the new new york. see if your business qualifies at startupny.com
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david: fifth two businesses is a new orleans startup that has only been around three weeks -- 52 business. it in three weeks created three distinct businesses including one of their own but these entrepreneurs are just getting started. they plan to start a new business every week for the next year, thus the name. joining us now, jason seidman, 52business ceo and colin grosing, excuse me, 52business found irand president. thanks for coming in. colin, first to you, do you already have a list of the kind of businesses you are going to start? >> we have a list of over 250 that are our ideas. david: give us some examples. >> apocalypse camp is really exciting one. a kind of a summer camp for adults where you come down to learn survival skills, hotwire a car, motorcycle, siphon gas, grappling hook. that is fun one we're looking forward to. david: obviously, jason, not all
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of these are going to succeed. most businesses don't success, led's face it. what are your expectations in you are just going to seed these new businesses with a little bit of venture capital, get them going and move on to the next thing and see how they turn out? >> so right now we're trying to help anybody start the business that they are looking to start and sometimes they're going to be successful and we're trying not necessarily to use any capital in the beginning to show if you're responsible and you do enough research you don't always have to do that but you can do it on your off time and just find different ways to start a business without necessarily even taking the time that you would normally be at work or the capital that you would have saved up. david: colin, you're going to be putting down some sweat schwec equity here. so will you take equity in the companies you start up? >> definitely not. there will be some case, we're talking one person who this fits the model she wants us to have a continuing involvement. she wants to use our infrastructure and have us be
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along for the long term and in that case partnership makes sense where we have some equity. typically if someone wants to come in get our help, get our tools, get our guidance, we don't want to take anything from them at all. david: jason what about the people you hire for this project? obviously that is one of the most important things about starting a new business. how can you hire somebody in just a short span of time, particularly the right person? >> sure. when we were doing 52businesses we were able to utilize venture for america, they obviously vet their people extraordinarily well. we had the great opportunity to work with some of their people. locals who are interested in working with us personally as interns. and then for businesses that are coming in, we make sure that they have looked into the people that they want to hire for their first, for their first as well. david: you say local, you guys are in new orleans. new orleans is nice place. everybody is so helpful. i know a little by the new or liens. even your competitors help you out in new orleans. say you come to a place like new york which can be pretty
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cutthroat. it is a very different environment. how will you make the switch? >> sure. >> that's a good question. i think we're all about kind opy and helping other people and we found, even when we talked to people from new york, that they are usually willing to reciprocate that, if people don't want to be involved with us, and don't want to help, they won't be involved and that's okay. >> but it has been surprising from all over the world how many people are interested in getting involved. so it has been exciting so far. david: colin, we've been trying for the past few days, and we'll continue it on by the way at fbn, to find jobs for folks or at least express an interest on part of boys people for the kind of people they're hiring right now. who really stands out in your mind? what kind of person are you looking for, for some of these businesses? colin, first to you, and then jason? >> definitely self-starters. people who have a track record of whether it is starting clubs, starting organizations, starting their own businesses. even if you're under the age of
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20, that's definitely the first thing i look for. david: jason, specifically, we've got to make this quick, but what kind of talents does a person you're hiring have to have? >> sure as long as they have the talents that are beneficial to whatever industry l looking to getting into, as long as they're passionate about those talents. that is really important. because they can gain any other kind of knowledge they need to acquire. david: it is called, 52businesses. thank you very much. we have break news. i would like to continue but we have to move on. adam, what is the news? >> this involves general motors. they're penalized by $28,000, by national highway safety transportation, nhtsa, failing to respond questions about 2 million vehicles they have called. there is civil penalty, on each date gm is late since ape third. the penalties accrues $7,000 each day they don't finish the responses. gm had until april 3rd to answer 10questions, david, nhtsa had posted.
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they say gm has been submitting documentation and data but they haven't completely all of the questions. so the fine will grow $7,000 for each day they don't finish the questions. david: it is 10questions. they're pretty involved. they will probably not finish for a while. adam, thank you very much. liz, what is coming up? liz: it won a prize for the best skyscraper. looks like on iconic building. looks like fox business exclusive. apple stores changed retailing landscape forever. you won't believe which is by is taking inspiration from apple now. we'll bring you the story when we take you "off the desk." [ male announr ] how can power consumption in china, impact wool exports from new zealand, textile poduction in spain, and the use of medical technology in the u.s.?
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david: i certainly didn't know this. the hearst tower was the first construction project approved by new york city after 9/11. mirrored tower in midtown manhattan was built in 2004 on top of the original six-story base which was originally commissioned by william randolph hearst back in 1928. liz: there is great history underneath it but our own cheryl casone is live at the hearst tower. hi, cheryl. >> oh, liz, and dave, certainly
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when we see the sun finally start to shine on midtown manhattan, imagine going back to 2001 and you're about to start crux construction and consulting for hearst tower and that meeting you're supposed to have on september 12th, 2001. we have the national president for hearst corporation. he joins me now. lou, let's go back to that time. certainly as the project was about to begin, tragedy struck manhattan. you had to commission the building help through all of this. tell me what happened. >> very interesting. the meeting was scheduled to vote on whether to go ahead with this project or not. was scheduled for september 12th. that meeting obviously did not happen given the events but it happened weeks later which is really unprecedented givent dynamics of new york city at the time and people were moving to lower buildings and out of the city and there was max exodus.
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we made a commitment not only to say in new york, stay in the neighborhood but build this iconic tower to boost. it was a huge commitment to hearst corporation. >> we saw a lost media and technology companies, except for hearst have been choosing to move downtown to lower manhattan. that is certainly changing the landscape of where companies are based but along 57th street in midtown manhattan you're saying you see a lot more development including 157 down the street? >> i think this neighborhood is revitalized, in part because of time warner development and hearst commitment to the area. >> right. >> there is catalyst of real energy in the space. >> and i will say though that time warner next door, by the way we should mention is actually moving downtown. real estate in manhattan and new york city, are you hearing a lot of companies saying that it is too expensive to rent office space here in manhattan. they're looking at other areas of the three states around us? >> i think, everybody is looking at all their options but i think
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new york, new york is a vital commercial real estate market. i think there is a huge amount of talent that's here that people need to tap. >> right. >> and while people may be moving out of new york city residentially i think the hub of the office environment is still new york. >> lou, thank you very much. i really appreciate your time today. of course liz, dave, we stand here in the lobby, i want to mention when you're talking about of course a lot of commercial properties that are part of real estate investment trusts, that are developed and depend on, the investments here in new york city, he is saying he is actually seeing an up tick. others are telling me right now, analysts you may see a little bit of vacancy rates jump in midtown manhattan. that could be impact for some investors, guys. we're sending it back to you 10 blocks away from where i'm standing now. liz: looks good, cheryl thank you so much. david: thank you, cheryl. liz: samsung and google better watch out. one music heavyweight getting. >> a wearable tech market, debuting a new smart watch.
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details straight ahead. david: also, if it has been successful selling computers why not use that success and strategy to sell, is that a marijuana cigarette? ee, my god. what do you call that? liz: cigar. david: a booby [ male announcer ] celebrate every win with nicoderm cq, the unique patch with time release smartcontrol technology that helps prevent the urge to smoke all day long. help prevent your cravings with nicoderm cq. that helps prevent the urge to smoke all day long. gunderman group is growing. getting in a groove. growth is gratifying. goal is to grow. gotta get greater growth. growth? growth. i just talked to ups. they've got a lot of great ideas. like smart pick ups. they'll only show up when you print a label and it's automatic. we se time and money. time? money? time and money. awesome. awesome! awesome! awesome! awesome! awesome! awesome! awesome! (all) awesome! i love logistics.
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why relocating manufacturingpany to upstate new york? i tell people it's for the climate. the conditions in new york state are great for business. new york is ranked #2 in the nation for new private sector job creation. and now it's even better because they've introduced
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startunew york - dozens of tax-free zones where businesses pay no taxes for ten years. you'll get a warm welcome in the new new york. see if your business qualifies at startupny.com david: time to go "off the desk." google, samsung, everybody is coming out with wearable technology these days. now you add musician, will i am. on a talk show he released his latest project, the smart watch. he used his own money to fund the watch it. has phone, music, bluetooth and social capabilities. he tweeted the device will launch in july. liz: we'll get him on. also "off the desk," a cannibis store opening with strange new familiar to it. it was designed to appeal to cannabis consumers who enjoy
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chic high-tech retail environments like apple store. it features tablets to read about each strain of marijuana and spacious area for customers to examine buds under light. david: i don't know. "the willis report" is next. gerri: hello, everybody, i'm gerri willis. right now on "the willis report" , two safety advocates stage a last minute effort to stop chinese chicken coming into the united states. we have important news for all consumers. forget plastic. cash is king. we'll have our next family who are taking our cash challenge. our special report, a user's guide to education. the college degree giving you the most bang for your buck. we're watching out for you on "the willis report." gerri: we have good news tonight, no, great news. we begin with a medical breakthrough. new research indicates spinal cord injuries may no longer mean

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